InvestorQ : What has driven the sharp rise in metal and oil stocks on 31 March? Why did IndusInd correct so sharply?
prachi Patwardhan made post

What has driven the sharp rise in metal and oil stocks on 31 March? Why did IndusInd correct so sharply?

Answer
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shrinidhi Rajan answered.
7 months ago


Sensex closed 1028 points higher on 31 March, the last day of the fiscal year. Year 2019-20 will go down as one of the worst fiscals after 2008-09. Indian shares moved up on upbeat factory data from China which finally gave some hope to investors of a rebound in factory and economic activity. However, the number of Coronavirus cases in the US, UK and India continued to spike even as Italy appeared to be peaking out. With oil touching a new low of $22/bbl in the Brent Crude market, the BSE Oil and Gas ended 8.2% higher. Most of the hydrocarbon stocks like BPCL, IOC, IGL ONGC and GAIL rallied sharply. The positive factory data from China also resulted in a sharp spike in metal stocks which rallied 5-6% led by Vedanta and Hindalco. IndusInd cracked by 15% after it reported 11% flight of deposits, which did not go down well with the markets.